Auto sales, though still flirting with the possibility of another annual record, have begun to level off as consumers satisfy much of the pent-up demand that swelled during the recession. Another sign the market may be reaching its peak: more Americans are falling behind on their car payments.
As U.S. sales growth slows in 2016, summer demand is falling short of last year’s blockbuster numbers. Industry-wide sales ticked 0.7% higher in July compared to the same month a year ago, according to Autodata. In July 2015, automakers reported a 5.3% increase in deliveries. General Motors (GM), Ford (F) and their fellow manufacturers will release August sales results on Thursday.
The slowing pace of sales has come at a time when loan delinquencies are on the rise in the $1 trillion auto-loan market. For subprime auto loans, delinquencies extending beyond 60 days jumped 17% last month, Fitch Ratings said in a recent reportOpens a New Window.. The upswing is more pronounced for prime delinquencies, which were up 21% versus July 2015.
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I see big deals coming!
ReplyDeleteMy last new car I purchased was in 2003. I still have it. Haven't been able to afford a new car since the great recession started in 2008. The prices are totally outrageous and unaffordable. I have been forced to but late model used cars and just keep them running. If it comes down to putting dinner on the table and a new car payment, I take dinner! Some of the new cars are as much as a new house! Car prices were much lower back in 2003 and is was making twice the income! Foolish to buy a new car or truck in today's market!
ReplyDeleteI haven't had a new car since 1973 and have purchased eight used cars and trucks since. There's no point to buying new when a late model used vehicle is 2/3 the price and all of the bugs have been worked out of it.
ReplyDelete10:23 you think you can buy a house for $25,000?
ReplyDeleteSure! Auction, foreclosure, some boarded up POS in Fruitland. Just look around.
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